Understanding RG146: The Foundation of Financial Advice in Australia

RG146, short for Regulatory Guide 146, is a standard set by the Australian Securities & Investments Commission (ASIC) that outlines the minimum training and competence requirements for individuals who provide financial product advice to retail clients in Australia. It ensures that financial advisers have the necessary skills and knowledge to deliver appropriate, ethical, and legally compliant advice to consumers.

Originally introduced as part of the Financial Services Reform Act, rg146 plays a central role in maintaining professional standards within the financial services industry. The regulation applies to advisers across various sectors, including banking, superannuation, insurance, and financial planning.

Why RG146 Matters

The primary objective of RG146 is to protect consumers by setting a benchmark for financial adviser qualifications. Since most retail investors may not possess in-depth financial knowledge, it’s essential that those providing advice are both competent and trustworthy.

RG146 provides a framework for education and continuous learning, helping to build public trust and confidence in financial professionals. It also supports the obligations of Australian Financial Services (AFS) licence holders, who must ensure that their representatives are properly trained and compliant with industry standards.

In addition to its initial requirements, RG146 highlights the importance of ongoing development, reflecting the need for advisers to stay current with regulatory changes, market trends, and emerging financial products.

Tier 1 vs Tier 2: Levels of Advice

RG146 defines two categories of advice, each with different training expectations:

Tier 1 – Personal Advice

This tier applies when a financial adviser provides tailored advice that takes into account a client’s personal financial circumstances. To offer this type of advice, individuals must complete a higher level of training, generally equivalent to a diploma under the Australian Qualifications Framework (AQF). It covers both generic and specialist knowledge, along with relevant skill units.

Tier 1 advice often includes complex products such as managed investments, superannuation, securities, and derivatives.

Tier 2 – General Advice

General advice refers to guidance or information that does not consider a client’s individual situation. This could include presenting product features at a seminar or answering general questions about insurance policies.

The required training for Tier 2 is less intensive and typically aligns with a Certificate III under the AQF. It mainly focuses on basic products such as general insurance or non-cash payment products.

Who Needs RG146 Training?

Anyone who provides financial advice to retail clients under an AFS licence must meet RG146 requirements. This includes:

• Financial advisers offering personal or general advice 
• Bank staff recommending financial products 
• Superannuation consultants 
• Insurance sales representatives

However, some individuals are exempt, such as administrative staff, call centre operators using pre-approved scripts, and para-planners who do not interact directly with clients.

It’s important to note that RG146 is not a licence itself. Rather, it is a component of what is required to operate legally within the industry under an AFS licence.

How to Become RG146 Compliant

There are multiple pathways to achieving RG146 compliance:

1. Accredited Training

Completing an accredited RG146 training course is the most common route. These courses are designed to cover the specific knowledge and skills required for the relevant financial products. Upon successful completion, participants receive a Statement of Attainment that verifies their competence.

2. Recognition of Prior Learning (RPL)

Experienced advisers may qualify for RG146 compliance through RPL. This involves an assessment of prior education and professional experience to determine if it meets the competency standards outlined in RG146.

3. Assessment by an Authorised Organisation

Some individuals may undergo assessment without formal study if they can demonstrate the required skills and knowledge. This pathway is typically suitable for highly experienced professionals who have not completed formal qualifications but possess extensive industry experience.

Continuing Professional Development (CPD)

RG146 also promotes ongoing learning through Continuing Professional Development. Advisers are expected to regularly update their knowledge to remain competent and informed. CPD may involve attending workshops, enrolling in short courses, participating in webinars, or completing internal training programs.

AFS licensees are responsible for setting up CPD programs for their staff, monitoring their progress, and ensuring that learning activities align with regulatory and professional standards.

Evolving Standards and Future Considerations

While RG146 has served the industry well for many years, there have been discussions about its limitations. Some industry professionals argue that it focuses too heavily on product knowledge and not enough on the practical aspects of delivering tailored advice.

As the financial landscape evolves—with new technologies, products, and consumer needs emerging—there is increasing pressure to update training standards. This may include integrating topics such as ethical decision-making, digital financial advice, and sustainable investing into the curriculum.

The ongoing review of educational requirements reflects a broader shift toward professionalism and higher accountability within the sector.

Conclusion

RG146 forms the backbone of professional financial advice in Australia. Setting clear education and competency standards helps safeguard consumers while supporting advisers in delivering high-quality service.

Whether you’re starting a career in financial services or managing a team of advisers, understanding RG146 is essential. It ensures not only compliance but also a commitment to continuous improvement, ethical conduct, and long-term success in an ever-changing financial environment.